convertible notes, page-2

There appears to be 1,950,000 convertible notes left of the original 4,000,000 issued @ $1 each in January 2007.

The rest have now been converted to shares at different times throughout the year.

In simple terms, if the share price of burlison was 50 cents at the time they chose to convert notes they would only get roughly 2 shares for every $1 note.

By maintaining a small capping system, they have been able to have shares issued at 15c etc. Thereby giving them roughly 6.5 shares for every $1 note held at the time of conversion.

No money actually passes to Burlison, it is forumula agreed upon for time of conversion by the noteholder.
This is actually a form of dilution for present shareholders.